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Bill Dunster, the man behind zero-energy development BedZed, is in talks with the Greater London Authority to build 1000 zero-carbon residential units every year.

Bill Dunster Architects is working with Greenpeace to set up a supply chain that would guarantee 1000 units for the same price as a conventional scheme.

According to Dunster, the proposed developments, with the working title Zed Quarters, would use modern methods of construction and microgeneration technologies.

He said: "We are working with the GLA on the potential to roll out 1000 units per year on a regular basis. Eventually, it would be Allan Jones [chief development officer of the Climate Change Agency] who we would work with. It would release the GLA from relying on central government grants and allow us to move much more freely and quickly."

It is likely that Zed Quarters would use Chinese suppliers to bring down costs.

Dunster said: "We've been working on setting up a supply chain, which would involve a mixture of Chinese and UK suppliers, for some time now. I can guarantee that these units will be the same costs as regular developments. It will change people's expectations of what is possible."

A spokesperson for Ken Livingstone, the mayor of London, said: "Plans are being drawn up for a zero-carbon development of up to 1000 units in London. The mayor expects this to show that large developments can be designed to exemplary sustainable standards."

I can guarantee that these units will be the same costs as regular developments

Bill Dunster

The news comes a month after Livingstone travelled to China to see a presentation on Arup's "eco-city" in Dongtan near Shanghai.

The project has already inspired the GLA to work with Arup to develop a similar eco-city in the capital.

Peter Head, a director at Arup, told ºÚ¶´ÉçÇø it wanted to demonstrate that it was commercially attractive. Dunster advised Arup on the scheme and plans to bid to build it using his new supply chain.

n Ken Livingstone and housing minister Yvette Cooper this week announced plans for a "water-city" in the lower Lea Valley in the Thames Gateway, the site where the Olympic Park will be.

The development will be based around canals and waterways and about 250 ha of green space. Up to 40,000 homes will be built as part of the regeneration of the area.